According to Odaily Planet Daily, U.S. Senator Cynthia Lummis proposed using the paper profits of the U.S. gold legacy to finance Bitcoin purchases. The U.S. Treasury and the Federal Reserve own about 8,100 metric tons of gold, valued at $42 per ounce.
Lummis hopes to revalue gold at its current market price of $2,650 to finance Bitcoin purchases without raising taxes or issuing new Treasury bonds. Critics point out that this would require the Federal Reserve to pay the difference through money printing and asset sales, which is actually a "backdoor loan."
Monetary economist George Selgin called the plan "gilded magic," questioning its attempts to circumvent the normal appropriations process and conceal the truth.
